3. Initial Fees are a WHOOPING 30%, due to what I think was a very illiquid market initially

4. I gradually adjust fees to be lower to take into account the better market infrastructure

5. My final number of 5% for transaction fees is STILL ridiculously high. I am paying closer to 1% now.6. I got Gox-ed (lost all my bitcoins during the Mt Gox hacking of Q1 2014)

With those very very heavy penalties (getting Goxed) and conservative assumptions (super expensive fees), here are the results:

The pink highlights are the bitcoins that would have been lost because of the exchange hacking.

So, with $350,000 being deployed every quarter with $12,500, the portfolio would have ended at $2,148,954. If my math isn't wrong, with only about half the time (Q2 2014 onwards), my IRR would have been 51%.

If I hadn't lost my BTCs in the Mt Gox hacking incident (I think most people did though..), the portfolio final value would instead be $315,962,750. If I didn't get Gox-ed and safely kept my BTCs throughout the years, my IRR would have been 252%.

My math regarding the IRR might be wrong though. I'm not really bothering too much. Just know that the returns would have been YUUUGGEEE.

Of course, in retrospect it is easy to see what would have been the best way to have invested in the market.

Anyone crazy and brave enough to have bought huge amounts of bitcoins in the early days when the technology was still developing and still unstable, should and have been handsomely rewarded for taking such risks with something that could very well be nothing. In my opinion, those bitcoin millionaires all deserve it.

Sometimes I wish I had the balls, foresight and understanding to have invested heavily into crypto years ago. I was playing around with mining bitcoins in 2013, but my conclusion was that if its ONLY use is a digital store of value, it is not going to work out. The paradigm shift that blockchain tech is not necessarily only just for money (bitcoin as money is an extremely narrow usage of blockchain technology) is what made me come back to the crypto space and convert myself to a strong believer after finding out more.

The true main point that I am trying to make here isn't that you should invest in bitcoins or other cryptos - NO, THIS IS NOT THE POINT I AM TRYING TO MAKE.

Instead, I think the better learning point here is that as long as you invest in fundamentally sound assets for the long term, you should be making decent returns.

13 comments:

HAHA it is unfortunately not mine. that was the ad that used to run on reddit when bitcoin was still a very niche and developing community. not a very convincing ad, but i guess anyone that purchased bitcoins during that period and held it until now are stupidly rich!

No matter what, investor have short memory, just like as in stock, crash after crash yet still people invest and speculate. And there are still people buying Noble too everyday even if it is just 0.00001 mm to bankruptcy. I am one of them, as long as we don't speculate beyond what we can lose, that is fine, because the risk reward ratio are too tempting. So is bitcoin, definitely not for those with weak heart, i think everyone should have at least a small position here, the reward is great, much greater than the risk. JMO

Victor, actually I think it is quite different. Noble has been an obvious sinking ship for YEARS. Some cryptos on the other hand have extremely strong fundamentals and I would agree very concrete price expectations. Not a fair comparison to simply say both are high risk / high reward.

Unforunately, as much as some people might want to have a small position in bitcoins, many people do not know how to yet!

Are you thinking about investing in Bitcoin?Then you need to read the information contained in this report.There is a paradigm shift coming that is going to make Bitcoin look like old news.Something so new and transformative that it may revolutionize the global economy.Yes, Bitcoin is STILL an incredible opportunity.But it’s just the beginning.These new coins could deliver even bigger gains and profit.Follow the link below to learn how.https://cryptocrusher.net?45164c4c

Are you thinking about investing in Bitcoin?Then you need to read the information contained in this report.There is a paradigm shift coming that is going to make Bitcoin look like old news.Something so new and transformative that it may revolutionize the global economy. Yes, Bitcoin is STILL an incredible opportunity.But it’s just the beginning.These new coins could deliver even bigger gains and profit.Follow the link below to learn how.https://cryptocrusher.net?45164c4c

Are you thinking about investing in Bitcoin?Then you need to read the information contained in this report.There is a paradigm shift coming that is going to make Bitcoin look like old news.Something so new and transformative that it may revolutionize the global economy.Yes, Bitcoin is STILL an incredible opportunity.But it’s just the beginning.These new coins could deliver even bigger gains and profit.Follow the link below to learn how.https://cryptocrusher.net?45164c4c

Are you thinking about investing in Bitcoin?Then you need to read the information contained in this report.There is a paradigm shift coming that is going to make Bitcoin look like old news.Something so new and transformative that it may revolutionize the global economy.Yes, Bitcoin is STILL an incredible opportunity.But it’s just the beginning.These new coins could deliver even bigger gains and profit.Follow the link below to learn how.https://cryptocrusher.net?45164c4c

You’ve probably seen a lot lately about Bitcoin including speculation that it may drop in the future.There are thousands of new crypto-millionairesBut will people continue to get rich investing in cryptocurrency?Follow the link below to read the full report and find out what the future has in storeAND how you can profit in the months and years to come.https://cryptocrusher.net?fsda1a8491vas

Search This Blog

About Me

Disclaimer

Any advice provided on this website is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. If any products are detailed on this website, you should independently conduct your own due diligence before making any decisions.

gotmoneygothoney.blogspot.com disclaims all and any guarantees, undertakings and warranties, expressed or implied, and shall not be liable for any loss or damage whatsoever (including human or computer error, negligent or otherwise, or incidental or consequential loss or damage) arising out of or in connection with any use or reliance on the information or advice on this site. The reader must accept sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information on this website is no substitute for financial advice.

The author generally receives no forms of compensation or benefit from mentioning any of the products found on this website. Disclosure on holdings or interests will be provided if deemed informative, but it is not obligatory.

The links on this website are provided as a convenience and are for informational purposes only. No infringement of any sort is intended with the purpose of profiteering or malice. The author will remove anything at the request of the owner.

Any intentions contrary to this disclaimer will contain all efforts to be explicitly highlighted.